Maithan Alloys Ltd's production impacted by power cut in Andhra Pradesh

Due to the prevailing precarious power supply position in the State of Andhra Pradesh, Andhra Pradesh Electricity Regulatory Commission had permitted power distribution companies to impose 50% cut in contracted demand of power for all 24 hours on Continuous Process Industries (which includes ferro alloy manufacturing companies) from 08.04.2022 to 22.04.2022. i.e. for 14 days.

However, due to non-improvement in power supply position, Andhra Pradesh Electricity Regulatory Commission has extended such restriction and control measures till 30.04,2022 i.e. for further 7 days and the same may be further extended i.e. beyond 30.04.2022, after reviewing the power supply position by the said Commission in due course of time.

However, the other two manufacturing units of the Company at Kalyaneshwari in the State of West Bengal and Byrnihat in the State of Meghalaya are operating to capacity at present, without any disruptions.

The production capacity of company's Vishakhapatnam unit is 120000 TPA. The expected per day of production loss of unit is equivalent to percentage of power cut imposed on Vishakhapatnam unit of the Company.

The estimated impact on the production/operations are uncertain since restriction and control measures of power may be further extended beyond 30.04.2022 by Andhra Pradesh Electricity Regulatory Commission.

The above loss incurred is not covered by insurance.

The Wholly-owned subsidiary of the Company, namely Impex Metal and Ferro Alloys Limited, having its manufacturing unit at Bobbili in the State of Andhra Pradesh having production capacity of 46900 TPA is also subject to restriction and control measures imposed by Andhra Pradesh Electricity Regulatory Commission. The expected per day of production loss of said Subsidiary Company is equivalent to percentage of power cut imposed on Bobbili unit.

Shares of Maithan Alloys Limited was last trading in BSE at Rs. 1448.80 as compared to the previous close of Rs. 1457.00. The total number of shares traded during the day was 3020 in over 492 trades.

The stock hit an intraday high of Rs. 1487.70 and intraday low of 1444.65. The net turnover during the day was Rs. 4428748.00.

Source : Equity Bulls

Keywords

MaithanAlloys INE683C01011 ProductionImpact PowerCut AndhraPradesh VizagPlant BobbiliPlant